Question

Please also include a step by step explanation

Answer 1

Explanation:

Use the compounding formula

FV = PV (1 + i)^n where i is the decimal percentage n is years

864 = 500 ( 1+i)^3

Solve for i = .20 or 20 percent increase each year

put '4' in for n and calculate FV = approx 1037 lions in year 4